HRS § 468M-9 - Client trust accounts; maintenance of and withdrawal from accounts
AI-assisted research summary: An activity desk must deposit customer money into a Hawaii trust account quickly, keep it in trust, avoid encumbering it, and may withdraw only for specified payments, refunds, commissions, interest, or remaining consumer funds after payment.
(a) Within three business days of receipt, an activity desk shall deposit all sums received from a consumer for excursions or activities offered by the activity desk in a trust account maintained in a federally insured financial institution located in Hawaii. All sums paid by any person to an activity desk for activities furnished by an activity provider shall be held in trust for the benefit of the person making the payment and the activity provider. The activity desk shall be considered the trustee of the funds paid into the client trust account, less any commission. (b) The trust account required by this section shall be established and maintained for the benefit of the consumers paying money to the activity desk and the activity provider. The activity desk shall not in any manner encumber the amounts in trust and shall not withdraw money therefrom except: (1) In partial or full payment to the activity provider directly providing the services for excursion or activities; or (2) To make refunds as required by this chapter. (c) This section shall not prevent the withdrawal from the trust account of: (1) The amount of the sales commission, up to a maximum of fifteen per cent; (2) Any interest earned and credited to the trust account; (3) Refunds; or (4) Remaining funds of a consumer once the activity provider has been paid. (d) At the time of registration, the activity desk shall file with the department the account number and the name of the financial institution at which the trust account is held or submit a bond or letter of credit as provided in section 468M-10. The activity desk shall notify the department of any change in the account number or location within one business day of the change. [L 1991, c 240, pt of §1, §§2, 4; ren and am L 1992, c 231, pt of §2, §§3, 6; am L 1995, c 174, §§1, 2; am L 1998, c 248, §§1, 2; am L 2010, c 150, §3]